$QQQ VS $SPY
Courtesy of Howard Lindzon
I have been leaning heavily on $QQQ over $SPY for a very long time on this blog. It worked.
Here are two charts that offer up some short term and long term perspective of how that ratio is changing right now:
Technology is more pervasive right now so I doubt we see a crash the likes of 2001, but cycles happen and the money that is not leaving the market is rotating (as I have covered in Momentum Monday’s) into housing, commodities, energy, retail and financials.
These charts DO NOT take into account crypto or defi to hot areas of technology investing that I have been writing about here and allocating capital the last few years.
It will be interesting to see if these new hot areas of technology will hold up if the $QQQ vs $SPY trade continues to underperform.
Hopefully this gives everyone some perspective on what has been going on.
[For] many people this blip down in technology stocks has been brutal, but it is possible that it can get much worse.
